Reoptimization Approaches for the Vehicle-Routing Problem with Stochastic Demands

@article{Secomandi2009ReoptimizationAF,
  title={Reoptimization Approaches for the Vehicle-Routing Problem with Stochastic Demands},
  author={Nicola Secomandi and François Margot},
  journal={Operations Research},
  year={2009},
  volume={57},
  pages={214-230}
}
We consider the vehicle routing problem with stochastic demands (VRPSD) under reoptimization. We develop and analyze a finite-horizon Markov decision process (MDP) formulation for the single vehicle case, and establish a partial characterization of the optimal policy. We also propose a heuristic solution methodology for our MDP, named partial reoptimization, based on the idea of restricting attention to a subset of all the possible states and computing an optimal policy on this restricted set… CONTINUE READING
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